A taxpayer files the belated return if they have missed the deadline to file the original return. The belated return is filed under Section 139(4) of the Income Tax Act. A penalty of Rs 5,000 is applicable at the time of filing a belated return. This penalty is payable even if there is no pending tax payable amount. If the taxable income does not exceed, then penalty of Rs 1,000 will be applicable. However, no penalty will be applicable on belated return if the taxable income does not exceed the basic exemption limit of Rs 3 lakh.
Belated return is the last chance for the taxpayer to file the ITR and claim refunds and certain losses. If the belated return is not filed, the person misses those claims and credits for that assessment year. After the expiry of the filing of the belated return, only an updated return can be filed subject to the condition that there is a tax liability payable. Further, if no belated return is filed, the taxpayer shall have to face increased interests and penalties on the tax liabilities if a notice is sent by the income tax department.
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